11th Mar 2019 10:58
LONDON (Alliance News) - Orchard Funding Group PLC on Monday said profit and revenue increased as the financial services firm increased its loans in the first half of its financial year.
In the six months to January 31, Orchard Funding's pretax profit increased 20% to GBP1.2 million from GBP1.0 million in the same period the year prior.
Orchard Funding attributed the growth to a decrease in costs - the company's administrative expenses fell 7.1% to GBP1.3 million - and "stepping up" its new business sales by increasing its sales force.
The company's revenue increased 3.7% to GBP2.8 million from GBP2.7 million.
Orchard Funding's loan book increased 9.7% to GBP31.6 million from GBP28.8 million, with lending to clients up 5.9% in the period to GBP36.4 million.
The company declared an interim dividend of 1.0 pence per share, flat on the year before.
"We continue to grow in a conservative and controlled manner. The market is full of existing and new sources of liquidity including challenger banks and debt funds and this is therefore a satisfactory achievement by the group," said Chief Executive Ravi Takhar.
Orchard Funding said its application for a banking license "continues to move forward in a positive manner".
The company said its momentum has carried into the third quarter with "no material change" in underlying performance since the start of the current financial year.
Takhar said the company is "looking forward to an exciting year".
Chair Gary Jennison added: "I believe there remains considerable scope to pursue our strategic priorities by developing the business model organically and pursuing attractive acquisition opportunities, if and when something arises which would build shareholder value."
Shares in Orchard Funding were untraded Monday but last closed at 82.00 pence each.
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